How to calculate employee’s holiday pay?

There are three prerequisites for automatic calculation of an employee’s holiday pay.

  1. The employee is entered in the system
  2. All the employee’s previous 6 months’ salaries have been entered *
  3. The calendar includes the employee’s previous holidays and, for example, sick leaves
  4. The holiday is added to the calendar as an event

If all those prerequisites are met, all that remains is to calculate the salary. Once you have selected the employee and the calculation period when adding a new salary, all events of the relevant period are loaded from the calendar, in this case also the holiday. During loading the number of days and the holiday pay are calculated according to 6 months’ average pay. The bases for calculation of average pay are shown in the general details section under the information button to the right of the average pay amount. Public holidays are not included in the calculation of days.

* If the employee has not worked for 6 months yet, simply the remuneration received for the time worked should be entered. If the employee has worked for less than a month, the holiday pay is calculated on the basis of the agreed remuneration. It is also important to make sure that, for example, previous holidays (if such exist) are separately entered for previous salaries.

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